RBI updates 5-11 October 2026: repo hike to 5.50%, forex curbs

The MPC raised the repo rate by 25 bps to 5.50% and moved to a calibrated tightening stance. SDF is now 5.25% and MSF and Bank Rate 5.75%, which also lifts penal interest on CRR and SLR shortfalls.

Scheduled banks must hold at least 99% of required CRR every day, up from 90%, from the fortnight beginning 16 October 2026.

Banks can no longer let users rebook cancelled INR forex derivatives, and the no-underlying limit fell to USD 5 million. Contracts above USD 2 million booked after 10 October need a 20% cash Foreign Exchange Risk Reserve, and IOC, HPCL and BPCL get a USD window from 12 October.

RBI issued a CVA capital framework for commercial banks, effective 1 April 2027, amended SA-CCR rules and set a 2% risk weight on qualifying CCP trade exposures for banks, SFBs, payments banks and AIFIs.

Account Aggregators must become interoperable and depository CAS will include bank deposits, both by 31 December 2026.

RBI drained liquidity through daily and term VRRR auctions and announced a ₹25,000 crore OMO sale for 13 October, alongside a ₹36,000 crore dated securities auction.

Tiruvalla Urban and Sri Mahatma Basaveshwar co-operative banks came under section 35A restrictions, six other banks' directions were extended, and 23 NBFC registrations were cancelled. Paytm Payments Bank left the Second Schedule.